Fed Considers Rate Cuts Amid Persistent Inflation Worries

Key Points:
  • Mary C. Daly discusses potential rate cuts in 2025.
  • Inflation persistence could alter cut expectations.
  • Economic growth deceleration may necessitate rate revisions.

The Fed’s focus on restoring price stability could lead to fewer cuts if inflation persists, impacting market sentiment. Daly stated, “There is a reasonable expectation of two rate cuts in 2025.”

Mary C. Daly, President of the Federal Reserve Bank of San Francisco, expressed satisfaction with expectations for two possible rate cuts in the U.S. this year.

Bitcoin Prices and Market Dynamics Amid Fed Strategy

As of April 18, 2025, Bitcoin trades at $84,446.87, reflecting a market capitalization of $1,676,532,389,959.64. Dominating cryptocurrency markets at 63.07%, Bitcoin suffered a -0.35% decline over 24 hours and gained 2.65% over seven days, according to CoinMarketCap.

The Coincu research team anticipates further regulatory action and technological shifts as the Federal Reserve monitors inflation trends. Macro conditions and Fed policies remain critical to shaping long-term crypto market dynamics, with potential ramifications for global financial systems.

Did you know? In past cycles, signals of fewer rate cuts have led to higher Bitcoin activity, showcasing its role as a macro hedge compared to altcoins during uncertain economic conditions.

Market Reactions to Fed’s Stance

Did you know? Insert a historical or comparative fact related to this topic.

Market analysts highlight that a dovish stance from the Fed in terms of rate cuts could positively impact altcoin prices. Financial markets are closely monitoring these developments, with potential ramifications for U.S. Dollar and Treasury bonds, as noted in the Treasury Department’s Press Release on Economic Developments. No immediate regulatory shifts were noted in direct response to Daly’s comments.

bitcoin-daily-chart-407
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 16:09 UTC on April 18, 2025. Source: CoinMarketCap

The Fed’s commitment to price stability amid current economic conditions suggests that while rate cuts may be anticipated, their execution will depend heavily on inflation trends and economic performance.

Rate this post

Other Posts: